Can NFTs and Blockchain Help You Buy or Sell a Used Car?

Can NFTs and Blockchain Help You Buy or Sell a Used Car?

When selling a used car, good documentation is the golden ticket to maintaining its resale value.

This means having records showing when and where the vehicle was serviced, and whether any important services or checks were performed.

It may seem like a concern for classic car buyers looking to source, but even new cars seem to be concerned about resale values. Consider the upcoming Alfa Romeo Tonale for 2023, which includes the first non-fungible (NFT) standard token.

Now, NFTs have the stigma of people spending large amounts of money on what is essentially a private digital collection, but Alfa Romeo wants to use this technology to help owners deal with resale value. Poor documentation can kill up to 20 percent of a vehicle’s resale value, so NFTs will record the vehicle’s data and then issue a certificate to reassure the potential buyer that the vehicle has been properly maintained.

Both seller and buyer can benefit from this technology: the buyer gets peace of mind that the car won’t be a lemon, while the seller uses NFT as a way to protect and record the life of the car, ensuring that it gets its maximum value. In the market.

Now, we’ll still have to see how all of this is done in person, considering that the new Alfa Romeo Tonale hasn’t hit the road yet, nor is the used car market. However, the Italian automaker is not the first to offer this idea.

The engine series is a third-party solution that offers car owners and enthusiasts the opportunity to do what Alfa Romeo proposes. Car owners sign up for the service, and pay 50 euros a year for each vehicle they want in the service.

Owners will have to verify their identity and then provide accurate documentation of their vehicle. Information such as the make, model, year, chassis number, and PIN must be verified before a Engine Chain creates an NFT on its blockchain.

The vehicle owner owns the NFT, but when a service or inspection is performed, or any change occurs to the vehicle, the garage can include that information on the NFT, while maintaining the vehicle’s level of documentation. Only shops can make these changes, which means that documentation is irrefutable and cannot be changed. So far, only six stores have signed up for the service.

Julio Sainz, founder of The Motor Chain, said the idea for this platform came to him when he was buying a 1977 Ferrari. The car was an hour away, and he had to drive back and forth to the owner three times before agreeing to buy.

He said that while doing a pre-purchase check (a must when buying a used car, regardless of its pedigree), he found a huge envelope loaded to the brim with documents. Although the documentation was good (which likely led him to buy the new stallion), it was disorganized, brittle and chaotic.

The Motor Series began with classic and collectible cars featuring communities dedicated to preserving, preserving, and documenting cars, though the founder assured me that there were plenty of modern vehicles on his platform as well. He’s looking forward to owning motorcycles on the podium as well.

With thousands of NFTs on the platform, Sainz said the entire model is about trust. Not only does the owner say “this car is good” but everyone who has anything to do with the history of the car says so too. Furthermore, these consents cannot be changed voluntarily because they have been checked, checked and proven. The cars on the podium have won awards at auto shows for being the best documented, and for demonstrating confidence and enthusiasm in the solution.

But hasn’t all of this been done before? We take VINs to Carfax to find out if the vehicle has been in a serious or minor accident, which helps us understand and negotiate its value. Sometimes there are strange gaps or poorly interpreted services in those records which forces a slight conflict when a buyer asks a seller about this concern and requests a document to support their interpretation, and that’s where technology can take over.

Blockchains and NFTs may help verify and regulate these records, but they require a purchase. Owners have to sign up, garages have to participate, and buyers will have to take charge of the NFT after purchase, which means they have not only purchased a vehicle, but a digital envelope full of service records that requires an operating cost. When it comes to cars in particular, every little cost accumulates, so it will be interesting to see how or if this method of record keeping is gaining mainstream adoption.

#NFTs #Blockchain #Buy #Sell #Car

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